Section 837H — Income Tax Act 2007: Interpretation of Chapter

Interpretation of Chapter 837H 1 This section applies for the purposes of this Chapter.

2 There is the permanent cessation of a company's trade if—

a the company ceases to carry on the trade, or b the company ceases to be within the charge to corporation tax in respect of the trade, whether or not the trade is in fact ceased.

3 A company is insolvent at any time if at that time—

a it is unable to pay its debts as they fall due, or b the value of its assets is less than the amount of its liabilities (including its contingent and prospective liabilities). 4 “ Company ” means—

a a company as defined in section 1(1) of the Companies Act 2006, or b an unregistered company as defined in section 220 of the Insolvency Act 1986 or Article 184 of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19)).

5 For the meaning of “deposit-taking trade” and “winding up receipt”, see sections 837B(3) and 837C(3) respectively.